Technology Lab —

MSN/Live Search loses ground to Google

Microsoft's search entry remains mired in third place, losing ground to number …

This is not the kind of news you want when you’re welcoming 2,600 new employees into the fold: Microsoft’s share of the critical search engine market fell from 10.1 percent to 9 percent between March and April, according to Nielsen/NetRatings (PDF). Google, naturally, grew its share from 53.7 percent to 55.2 percent. Yahoo held steady at 21.9 percent (versus 21.8 percent in March). At a distant third, MSN/Windows Live Search’s numbers aren’t much better than they were six months ago.

Microsoft defenders who strain to find good news in this report might note that Microsoft’s search performance this year over last year is 7.4 percent better. But compared to Google’s lusty growth rate of 42.1 percent, well, there’s little room for comfort.

Microsoft is moving aQuantive into the same division as the search group. Best case scenario is that some of the same mojo that led aQuantive to become valued at $6 billion will rub off on the rest of the Platform and Services Division. But Microsoft’s top brass better beware: the huge job of integrating aQuantive into the family could cause the search team to lose focus and squander what little momentum they’ve been able to build.